Rupee Climbs To 36.19 As Rbi Stays Away

The rupee continued its upward march against the dollar yesterday to touch a 35-day high of 36.19 before closing at 36.20-21, as the Reserve Bank of India continued its non-interventionist policy. Although the RBI made enquiries in the forex market, it belied dealers expectations by not steppping in to shore up the rupee.

The spot rupee opened at 36.26-28, down marginally from Wednesdays close of 36.25-26, and climbed steadily throughout the day even as the inter-bank segment remained largely inactive. Forward premia firmed up slightly on month-end interest payments by corporates. The six-month premium closed at 5.97 per cent and the one-year closed at 6.04 per cent, against 5.78 and 6.0 per cent respectively for the previous day.

Some market players said the RBIs absence could be attributed to the lack of volatility in the market. However, others said the rupee has climbed too fast in too little time. The lack of interest being displayed by corporates indicates a further appreciation in the rupee, they added.